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How to apply for an FHA loan online

FHA mortgage loans are the most popular type of loans for home financing particularly among the first time buyers. Home ownership is a tough goal to achieve for the first time home buyers and the FHA loans make it easier.

FHA mortgage loans are the most popular type of loans for home financing particularly among the first time buyers. Home ownership is a tough goal to achieve for the first time home buyers and the FHA loans make it easier.

You need to gather essential information about your finances before applying for an FHA loan. Some of the essential information to need to gather includes:

  • W-2¬†forms for the last two years
  • your last two pay slips
  • two years of tax returns
  • your bank statements
  • statements on investments, earnings and securities
  • listing of your debts and minimum monthly payments
  • names and address of employer over the past two years
  • pension, social security or disability income, if applicable
  • two years of profit and loss statements if you are self employed

You need not have to provide details about your credit score, the lender will obtain it from the credit reporting agencies directly. After you submit your FHA loan application, one of the first things that lenders do is look at your debt-to-income ratio which is the percentage of your gross monthly income that goes towards the existing debt payments including the FHA loan you are applying for. Your total debt payment must not increase 43% of your gross monthly income and your mortgage debt should not exceed 31%.

Banks, financial institutions and mortgage lenders mostly offer FHA loans. However, their fees, rates and lending charges may vary. That is why it is extremely important to roam around and compare rates that lenders will offer you. One of the easiest ways to compare rates is to request free rate quotations from lenders online.

Once you choose a lender, you can go to the bank, gather the essential information, obtain the application forms, fill them out and then submit to the loan officer for review. Some lenders may also allow you apply for the loan online. They will help you login to their website where you can fill the application form, scan or attach electronic copies of the required documents and submit the form. The concerned loan officer can then review your online application and let you know if any other information is required from your end.

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